ECONOMY

TAIPED decides on a 70-30 split for Elliniko

The state privatization fund (TAIPED) approved on Wednesday the documents for the final phase of bidding for the international tender for the development of Athens old airport site, Elliniko with the state retaining a 30 percent share of profits.

The fund’s Board of Directors determined that the underlying goals of the project include ensuring substantial revenue for the state throughout the development period of Elliniko and maximizing the overall economic benefits by creating thousands of new jobs in the region.

“It is noted that the Hellenic Republic holds a 30 percent share of the future profits from the total development period, throughout the duration of the contract,» a TAIPED statement read.

Commenting on the decision, TAIPED President Takis Athanasopoulos said: «We are optimistic about the success of the international tender given the quality of the investment companies that have been shortlisted for the final stage of the competition. All financial indicators for this project show that Elliniko development is very important for the Greek economy and will also add significant value to the broader area of the capital in the country.”

Prospective investors are invited to submit their binding financial offers. They must also provide a detailed business plan, assuming 100 percent shareholding of Elliniko SA and show a commitment to sell more than 30 percent of the residential property.

TAIPED’s board was also briefed for the first phase of the international tender for the privatization of the country’s natural gas companies DEPA/DESFA and decided on the next steps.

The fund also decided on the process for the privatization of Thessaloniki Water and Supply and Sewage Company (EYATH). The fund’s board announced it would finalize its decision on the project following the presentation to the appropriate Parliamentary Committee.